MAINE, USA — Scot MacDonald of Scarborough has been retired from teaching since June. So far, life on the other side of work has been pretty laidback. He said he spends most of his time with his golden retriever, Scout, and his wife, Jan.
There is one issue that has been weighing on his mind, though: money.
MacDonald first learned about the Windfall Elimination Provision almost 30 years ago when his mother (also a teacher) retired. She had worked in the private sector for the first part of her career and discovered she wouldn't receive the full Social Security benefits she was owed.
That's because of the WEP, which was established in 1983 and still exists in 15 states, including Maine.
In Maine, public-sector employees, like teachers, police officers, firefighters, etc., pay into the Maine Public Employee Retirement System for their pension. They do not pay into Social Security.
Many public-sector employees, however, have a stint working in the private sector, and at that point, they do pay into Social Security.
Under the WEP, these retirees can only collect their full Social Security benefits if they have 30 or more years of "substantial earnings" in the private sector. If they don't, they can lose up to hundreds of dollars per month on these benefits.
"It’s almost like occupational discrimination because I chose a profession, and I’m being penalized for that," MacDonald said.
He worked for 51 years and paid into Social Security for 17 of them. For that reason, he will not receive his full Social Security benefit when he starts collecting these checks in four months when he turns 66 years old.
"I didn’t want to go into retirement thinking I have to fight for something that I should rightfully get," MacDonald said. "It seems unfair to spend time and energy to do that."
MacDonald said because his wife is also retired and receives full benefits, he's not super concerned about their finances. That's not the case, though, for Marsha Burns, a 73-year-old retired teacher who lives in Andover, Maine and is also affected by the WEP.
"At this point, I am not paid $512 each month because of the WEP," Burns said, noting that's about $6,000 per year.
Since retirement is so expensive, Burns is working two part-time jobs with Mountain Valley High School and RSU 10. She said she likes to work, but if she was getting her full benefits, she would drop at least one of the positions. She said the budget is always tight for her and her husband.
"[The WEP] does affect our medical care and our food and our regular budget. Fortunately, we have no mortgage; but look at the cost of oil. We’re both in our seventies. We’re not going to sit here and freeze to death in our house," Burns said. "So, we do not go out. We don’t go out to eat. We don’t go out to the movies. We don’t go out and do anything. The only thing we'll do is something with the family."
Jess Maurer is the executive director of the Maine Council on Aging. While speaking with NEWS CENTER Maine via Zoom, she called the WEP "arbitrary" and unfair.
"This is a fight between the federal government and the states, and it’s the people who are getting hurt," Maurer said. She also said that financial instability for older people has consequences.
"What happens is people become unhealthy when they are lower-income," Maurer said, noting that poor health costs the government money. "In Maine, we have about a third of older Mainers [who] don’t have enough money to meet their basic needs, and [the WEP] penalty is a part of that."
Maurer has been keeping her eye on a bill called the "Social Security Fairness Act."
Senator Susan Collins of Maine sponsored the Senate version of the bill, saying Maine is "disproportionately affected" by the WEP and the Government Pension Offset.
The GPO essentially doesn't allow public-sector employees to collect their private-sector spouse's Social Security checks, if their spouse dies. This bill would discontinue both of these provisions.
"To me, it is really quite simple. If you earned your quarters working in Social Security-covered employment, you should get your full benefit," Sen. Collins said.
Senator Collins said she has seen some pushback to the Social Security Fairness Act, which is primarily related to concerns about expense. She said it's also because the majority of congressional delegates work in states where the WEP and GPO are not problems.
For people who want to see change, there is potentially some hope.
Senator Collins said recently, the House's Ways and Means Committee unanimously reported the bill, which is a strong sign of bipartisan support. She said the primary challenge for this bill will be timing, since Congress is set to recess in a couple of weeks because the election.
You can calculate how the WEP might affect you here.